"Our knowledgeable friends confirmed that only the CPU for next generation Xbox 360 console will be developed by IBM in its Fishkill factory. This facility will not play with a GPU design as it's not ready for good yields on a 90 nanometre process.

But now we have confirmation that Taiwanese Semiconductor Manufacturing (TSMC), will take care of R500 production for the Vole. This decision was easy as TSMC is in a much better position with its 90 nanometre yields and production and as we said many times before Microsoft needs millions of those chips as soon as possible.

Imagine that all ATI and Nvidia graphic chips are now manufactured at TSMC and at the same time Microsoft will manufacture its chips at the same factory as well. Only Playstation 3 GPUs will be produced at a different Japanese factory.

Microsoft will keep TSMC busy and will definitely drive its business as those consoles are high volume jobs, at least for those kinds of chips, but it cannot be compared with low-end product orders, as TSMC will pump out millions or MX4000, Geforce 5200, 6200 or Radeon 9250 or X300 based cards. This is where the money is, not with the SLI and Crossfire chaps.

If the Vole wants to get enough chips to market in October and November, it should be going into final production as we write"

This seems to contridict the earlier story saying IBM would be manufacturing these GPUs. Perhaps this plant is one of IBM's manufacturing partners.